Question

1. If the evidence showed that Gatzke had intentionally tried to commit arson, how would that impact the court’s analysis?2. Suppose that Gatzke had been writing out personal postcards and not been filling out an expense report when he started the fire. Would Walgreen still be liable?

Walgreen employed Gatzke and paid for Gatzke’s temporary housing at the Edgewater Motel for a period of several weeks while Gatzke supervised the opening of a new restaurant. Gatzke used his hotel room as a makeshift office, and as a management-level salaried employee, had no set work schedule. On one workday, Gatzke returned to his hotel room after a business dinner and cocktails while discussing the new restaurant and began to fill out his expense report when he accidentally dropped a lit cigarette in the trashcan next to his desk. This started a fire resulting in severe damage to the motel and Edgewater sued Walgreen claiming that they were vicariously liable for the acts of Gatzke as its employee agent.